The burgeoning new suburbs on Pretoria's eastern flank have become a treasure trove for property bargain hunters, including investors, first-time buyers and homeowners looking to upgrade.
So says Irene Prinsloo, manager of leading city agency Homenet Pretor, who notes that many sellers in the area have reduced their asking prices by 20% and as much as 30% in some instances.
In addition, the "New East" has for the past few years been characterised by prolific sectional title development and there is now an oversupply of such units, Prinsloo says. "Buyers are aware of this and are taking advantage by opting to buy homes at recently-built developments that offer better packages at cheaper prices than their older sectional title counterparts."
Sectional title homes in the area typically range in price from R550 000 to R850 000 now, while generously proportioned three-bedroom homes are selling for around R1,1m and attracting existing homeowners upgrading from townhouses or small homes.
Also on the move are the owners of large properties, who are selling at much-reduced values in order to downsize to smaller homes that are easier to maintain and secure.
From the point of view of investors, rentals are "ticking over nicely", says Prinsloo, with realistically priced lets enjoying swift trade. "And landlords have realised that they can't foist high rents on the public in an effort to cover their own bond costs, as overpriced properties simply remain unoccupied." Rentals currently range from around R3800 to R4500pm.
Other current market characteristics in the area include a higher incidence of foreclosures and auctions as well as cash purchases. "Many families and friends are also pooling their resources in order to qualify for bonds and get a start in the market while prices are low."
ISSUED BY HOMENET